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Leasing - Lease Deals
Nowadays, many leasing companies work on the market of leasing services. What is important to know for a potentially lessee before the entrance of the one leasing company.
What leasing means?
Leasing is a long-term lease of the machines, facility, vehicles and industrial installations, provided for possible buy-out.
On the leasing market work not only specialized leasing companies, but commercial banks also provide this kind of services like leasing. Here's how of the whole variety of the leasing companies to choose the best company and the best conditions of the forthcoming lease?
Leasing transactions are classified in the following areas:
• plant leasing (industrial machinery, engineering tools, medical equipment);
• auto leasing (passenger cars);
• truck leasing (large, small load-lifting trucks, leasing of trailers, minibus leasing,
leasing of buses with different capacities);
• leasing of machinery;
First of all you need to consult the leasing companies or banks experts, representing the leasing loans. Having the information received from the consultants about the deal and comparing it with the others, you can choose the best variant and actually the best leasing company to acquire the necessary assets for leasing.
Usually, the potential lessees are submitted to such claims:
• a life of the applicant company must be at least 12 months;
• a lessee has to make an advance payment, which is figured in % ratio from the sum
of acquired assets;
• rise in % ratio per year, based on the market analysis;
• terms and an examination procedure of the application;
• a leasing item, whether it's an expensive equipment, or for example the same cars;
• a leasing item is booked on the balance of the leasing company.
Surely, leasing transactions have many advantages:
• you’ll receive a great opportunity to modernize and expand your vehicle and equipment property without buying this all at yours own cost and expense. This is especially important when your free cash flow is limited and right now you should keep your credit lines;
• repayment for the acquired property is an installment obligation during the fixed
• very often the leasing gives the opportunity to optimize the taxation. A lease payment to the fullest extent is associated with the prime cost, that’s why the tax base is reduced;
• unlike the credit the leasing doesn’t suggest additional collateral. The equipment you acquire automatically becomes the collateral. Alternatively, property acquired in virtue of leasing is much more producible variant, also optional services are included.
So, we can say that very often the leasing is in some ways beneficial for some companies.